FINRA Expels Firm for Anti-Money Laundering Violations

AIS Financial Action, FINRA Disc. Proc. No. 2008012169101

April 4, 2011

A FINRA hearing panel expelled a CA-based broker-dealer for failing to implement and enforce an anti-money laundering program. The hearing panel found that the firm, on three occasions failed to identify, investigate and report suspicious penny stock activity. The panel also found that the firm permitted a customer account from a person who had a disciplinary history and criminal indictments for engaging in organized crime and money laundering prior to opening an account at the firm.

Cross References

FINRA New Release

FINRA Rules 2110, 3011(a)

Exchange Act Rule 17a-3, 17a-4